Huge Gains Waiting in a Forgotten Corner of the Market

While every other investor on the planet is distracted by the S&P 500’s new highs, you have the opportunity to book serious gains in one forgotten corner of the market.

Metals are setting up to deliver traders and investors impressive returns. And I’m not talking about gold and silver. Instead, you need to check out the base metals. Sure, copper and aluminum are not as glamorous as gold and silver. But I doubt you’ll complain much when you see these powerful setups…

First, let’s take a look at these base metals through the PowerShares DB Multi-Sector Commodity Trust Metals Fund (NYSE:DBB). DBB has enjoyed a massive rally since early June. Capitulation selling back in March did the trick. Now, I really like how this name has consolidated in the $17-$18 range. It looks like it’s ready to break higher any day now…

PowerShares DB Multi-Sector Commodity Trust Metals Fund

DBB is the perfect way to play rising copper and aluminum prices. But if you’re looking for a pure copper play, keep reading…

Earlier this summer, I highlighted a huge buy signal in Dr. Copper. Sure, copper had its share of trouble in the past. After all, the metal has slowly trended lower since it peaked near $4.50 in 2011. But the action we saw earlier this summer was telling. Copper finally cleared critical resistance, breaking the downtrend that had trapped the industrial metal for nearly three years.

Copper Price, Dec. 2013-Aug. 2014

Since its march lows, you can see how copper has started to push higher in a nice, orderly fashion. That big dump in March turned out to be a huge fake-out move lower, setting up the multi-month rally we’re now witnessing.

I like copper here as it once again bounces off support.


Greg Guenthner
for The Daily Reckoning

P.S. Copper could be the perfect addition to your portfolio as copper prices continue to quietly gain ground. To learn more about how you can trade these trends for huge gains, sign up for the FREE Rude Awakening email edition, right here.

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Greg Guenthner

Greg Guenthner, CMT, is the editor of Opening Bell Fortunes and Seven Figure Signals. He has been with Agora Financial/Seven Figure Publishing since 2005. In 2019, the average position in Greg’s Sunrise Fortunes portfolio outperformed the S&P 500 by 1.65x.

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